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I wonder if there's not some caveat that either is in the rule or that can be added to select flights like this flight from the depths of frozen hell to which you're referring. I fly out of Newark Airport, and shits generally just fine, but you can still see delays an cancellations due to weather. I've flown many times out of Denver and have had weather cancellations when there's nothing but blue skies.
I think it'd be totally fair to be able to select routes, like this one, and add some sort of caveat saying hey, this route is notorious for being difficult, and so we don't have airlines forcing flights up and down for the sake of avoiding having to refund people, and at the risk of personal safety, this route may have loosened conditions or whatever.
As for losing flights in general, I think it's honestly for the best. Will flying get more expensive? Yep, and it sucks. Might it force the airline industry in general to adapt somehow? I certainly hope so. The standards for flying in the US have truly bottomed out.
And it's a bit tangential, but if this forces some airlines into failure, I hope we just let them fail, no repeats on bailout bullshit.
As of now, there's no exception for that except if it is an act of god type event like a named storm. Hurricane, no payout. Denver random Thursday blizzard? Payout.
The US has no high speed rail, flying is the only way around.